The South Florida real estate market is showing a strong growth trend. Part of what has driven the market growth is the influx of buyers from foreign countries, in particular Latin American countries like Brazil, Venezuela, and Colombia. In recent months, overall home prices have ticked upward and sales momentum is beginning to slow. But foreign buyers are one segment of the marketplace that is just heating up. These buyers are willing to pay top dollar for homes in a U.S. market they see as a bargain.
According to a report prepared for Florida Realtors, foreign buyers are flocking to the Florida marketplace. International buyers purchase property in Florida because of the value they get for their money. 80 percent of the South Florida Realtors surveyed reported that their foreign clients found Florida properties as less expensive than their home country.
Relatively lower home prices aren’t the only thing attracting buyers to South Florida. Liliane Menezes, an 18 year veteran Real Estate Broker and Co-founder of Link International Realty explains why the foreign buyer demand is so strong for Florida Real Estate. “Today South Florida is one of the most desirable areas in the world. People are flocking to the United States and specifically to Miami/Fort Lauderdale metro area because of its temperature and easy access to anywhere in the world with three major airports. Investors or vacation buyers are looking to buy something they are going to use a couple of months out of the year. They end up buying an apartment because they want a place to stay that is not a hotel. The U.S. is also much safer compared to these other countries. They want their children to be able to play or ride a bicycle without being mugged.”
Link International Realty helps South Florida home sellers sell their home faster by tapping into a foreign pool of buyers. Menezes mentions some of the reasons why foreign buyers are typically more flexible with price. “If you are a foreign investor, especially if you are from Latin America, The U.S. dollar is still one of the best places to put your money. Often these are cash buyers. But many times they opt for a mortgage because they can use leverage and get even more value for their money. Their mortgage is very quickly accepted by banks because they put 30-40% down. And to them the high interest rates in their countries are so absurd that mortgages here are very attractive options for them.”
A 2013 survey done by the National Association of Realtors shows that prices paid by non-resident foreign buyers tend to be higher than those paid by domestic buyers. This could be due to the fact that foreigners purchasing real estate in the United States are typically wealthier than domestic buyers and are looking for above average properties for recreation and investment. Foreign buyers desiring to gain access to this hot market should expect a few challenges. Menezes explains, “When you are buying property in another country there are questions that need to be answered. A lot of little things come up specifically for foreign nationals.”
Link International Realty specializes in helping foreign buyers manage these challenges. Menezes explains what makes them different. “We provide a complete package of services which include immigration attorneys and accountants that can guide our foreign buyers in all aspects of the purchase process.”
This special attention given to the foreign buyers benefits South Florida sellers who contract with Link International Realty to list their properties. “We are having a lot of success with these buyers and in turn our listings do not last 30 days because we are giving an extra option to our sellers. When they list with us their homes are sold quickly.”
To learn more about Liliane Menezes and Link International Realty visit: http://www.linkinternationalrealty.com or call (561) 939-8285.